Diageo in high spirits as net sales reach £15.5bn in first half

Diageo in high spirits as net sales reach £15.5bn in first half

Ivan Menezes

Diageo’s interim results reported an 18.4% rise in pre-tax profit to £4.4 billion and net sales reached £15.5bn for H1.

The growth in profit and sales is largely attributed to price increases and to consumers shifting away from wine and beer opting to buy more premium spirits - with a growing demand for ‘super-premium-plus’ brands - up 31%. The Johnnie Walker brand delivered double-digit growth and surpasses sales of 21 million cases worldwide.

Ivan Menezes, Diageo chief executive, said: “I am very pleased with our fiscal 22 results. We delivered double-digit organic net sales growth across all regions and we gained or held off-trade market share in over 85% of our total net sales value in measured markets.

“We expanded operating margin while increasing marketing investment ahead of net sales growth and we used our strong cash generation to invest in long-term growth. I am very proud of what my 28,000 colleagues have achieved through their energy and creativity.

Looking ahead to fiscal 2023, he added: “we expect the operating environment to be challenging, with ongoing volatility related to Covid-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty.

“Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds.”

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